If you’re looking for ways to save money on your insurance premiums, one of the most frequently mentioned methods of doing so is to bundle your insurance policies.
What does bundling mean, and how does it save money for policyholders?
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What is bundling your insurance?
“Bundling” is the word used to describe having multiple insurance policies with one carrier. If you have a home, two cars, and life insurance policies all through the same insurance company, take a look at one of your statements. You should see a line that says something like “multiple policy discount”—and then how much you’ve saved on that specific line of insurance.
This is also sometimes called a multiline discount, with “lines” being the different types of insurance you have.
What types of insurance policies can you bundle?
The most common types of insurance to bundle are home + auto, or renters + auto. That’s because these are two very common forms of insurance that most people have—but that doesn’t mean you’re limited to bundling just these two types of policies.
Your ability to bundle different insurance policies is really only limited by the types of insurance lines that your insurance company offers. Large insurers typically carry many lines of insurance, so the possibility is there to bundle homeowners, cars, life insurance, and recreational vehicles such as boats or ATVs. If you want or need a higher level of liability protection, umbrella insurance is another policy you can typically bundle with your other insurance products.
Talking to your insurance provider about all of your insurance needs is key to obtaining the right coverage. And, if you are able to secure all of the coverage you need from a single provider, bundling can save you money on your premiums.
Are there situations when you shouldn’t bundle your insurance?
As you can see from the information above, bundling your insurance is a quick way to pay less on your insurance premiums. It’s more efficient for your insurance company, can streamline claims, and it makes you more likely to remain with a single insurer and become a long-term policyholder, which is good for the insurance company’s bottom line.
Even though there are many advantages to bundling for both you and your insurer, there are some situations where it bundling might not make sense. Here are some examples:
If you only need one insurance policy
The most common types of insurance to bundle are homeowners insurance and auto insurance, or renters insurance and auto insurance. In both cases, if you have a loan, your lender will require you to have a policy.
But what if you live in an apartment in a city where public transportation and walking can get you to where you need to be, and you don’t own a car? Or, what if you are a recent graduate who drives and are living at home with your parents while you look for work? In the first case, you only need a renters insurance policy. In the second, you only need car insurance. If you only need one insurance policy, it makes sense to find the best rate you can find for the coverage you need.
If the types of policies you need aren’t best served—or aren’t offered—by a single carrier
This is a less common situation, but is worth noting. Some insurance needs are best covered by specialized carriers. Exotic cars or rare vehicles, or atypical housing like a houseboat or a historical home, may require specialized insurance coverage. Insurers that offer these types of bespoke policies may not carry insurance products for more generalized needs.
Or, you may have several types of insurance bundled with one provider, but need to secure coverage for a line that your insurance company doesn’t offer. For example, not every insurance company offers motorcycle insurance. Rather than changing all of your existing policies to an insurer that does, it might be easier to just get a standalone policy for your motorcycle.
If it’s simply cheaper to go with separate policies
Insurance coverage can vary from one state to the next and from one company to the next—and individual needs can be different too. Occasionally, you might save money by having policies from two different insurance companies.
How can I find out if bundling insurance will save me money?
When you have a lot to protect, it makes sense to bundle. Talk to your Guaranteed Rate Insurance agent today to find out if you could save by bundling your insurance policies. You’ll get the protection you need and the peace of mind you deserve.
*Savings, if any, vary based on the consumer’s profile and other factors. Contact your insurance agent for more information. Restrictions apply.
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